Transformation programme Telefónica Deutschland realigns the company for sustainable growth

Telefónica Deutschland is making further progress in the company’s future-oriented transformation. In an increasingly saturated market, the telecommunications provider is addressing changing market conditions and new demands from consumers and society that go beyond mere connectivity. The new organisational structures are being implemented against a backdrop of technological leaps such as artificial intelligence and increased complexity within the company. At the end of March 2026, the Supervisory Board and management of Telefónica Deutschland had already taken the first step in this comprehensive transformation process by restructuring management and decision-making structures. “We want to further establish Telefónica Deutschland as the leading provider of digital infrastructure and services for people and businesses in this country. To this end, we are realigning our team and our processes. We are simplifying the organisation, consolidating activities and intensifying the use of artificial intelligence in key processes. In this way, we are safeguarding Telefónica’s competitiveness and future viability. We want to be the best gateway to digital technologies for citizens, businesses and institutions,” says Santiago Argelich Hesse, CEO of Telefónica Deutschland. The re-aligned organisation will create scope for innovation, investment and sustainable growth through greater efficiency and productivity. Quality initiatives and internal training programmes underpin Telefónica Deutschland’s future operating model. The company sees particular growth potential in convergence offers based on its strong mobile network, in enterprise customer business, and in innovative partnerships and services. Targeted household offers such as the new O₂ Plus bundles, as well as new contracts with major enterprise customers and newly established partnerships, underpin this ambition. At the same time, the performance of the strong mobile network is being enhanced through targeted own investments and cooperation agreements aimed at accelerating roll-out speed.

A key element of the transformation towards a more efficient organisation is the reduction of the workforce by up to 1,100 full-time positions by the end of 2026. A significant part of the FTE-reduction will be managed through a mutually agreed voluntary leaver programme, taking social factors into account, which has been jointly agreed by the Management Board and employee representatives from key business units. Additionally, around 60 own shops out of a total number of around 800 own and partner shops will be closed. This represents a reduction of around 8% as the company is adapting its retail structures to the ongoing trend towards digital sales channels. By 2028, the telecommunications provider also seeks to further streamline its organisation in line with demand. Across all sales channels, as well as within the customer service organisations, resources shall be bundled and capacities adapted to future requirements. Detailed plans for these areas are currently being worked out. Implementation will take place in several stages until 2028, as soon as relevant decisions have been taken.

In this context, Telefónica Deutschland will book a restructuring provision of 265 million euros in Q2 26 related with the measures already approved. For measures currently still under planning, the relevant provisions totalling up to 155 million euros are expected to be recognised presumably in H2 26. They will be booked as soon as the specific measures have been defined and coordinated. With all measures already approved and those currently being planned taken into account, the realignment of Telefónica Deutschland’s structures to meet changing market demand and technological progress is expected to generate annual savings of around 185 million euros from 2028 onwards.